Finance

Bulembekova Salima

KAZGUU University, Astana

Corporate takeovers in oil and gas sector of Kazakhstan

The mergers and acquisitions (M&A) writing has built up a few key sound inspirations to clarify why supervisors are occupied with M&A. The main inspiration is that supervisors yearning to enhance firm an incentive by making cooperative energies and efficiencies from combining assets (Bruner, 2002). The second real inspiration is that directors participate in takeovers since they advantage themselves as operators at the imaginable cost of diminishing shareholder esteem (Jensen and Meckling, 1976). An essential late improvement in hypothetical inspirations is that of securities exchange driven acquisitions (Shleifer and Vishny, 2003). Supervisors are roused to procure different organizations since they can exploit high stock costs to purchase different organizations moderately economically. Exact support for securities exchange driven obtaining hypothesis can be found in the investigations of Dong et al. (2006) and Rhodes-Kropf et al. (2005). Ferguson and Popkin (1982) were the first to conjecture a particular method of reasoning for M&A in the oil business. They clarify why oil organizations are prepared to pay over the top takeover premiums for their objectives. In their investigation of the arrangement amongst Conoco and Marathon Oil, for instance, they demonstrate that when assess findings, for example, deterioration can be expanded, it is workable for the acquirer to pick up to the detriment of the administration. In this way, it is workable for an oil organization to make a hazard free benefit by buying an objective for its own stores. Another inspiration for the motivation behind why organizations make takeovers is investigated by Weston's et al. (1999) investigation of mergers and rebuilding in the worldwide oil industry. These creators distinguish the fundamental change powers, for example, mechanical advances, globalization, and deregulation that happened in the 1990s. In particular, they recommend that insecurity in oil costs triggers M&A and rebuilding it. The current writing on O&G takeovers in fund diaries is moderately restricted contrasted and other particular industry takeover writing. Weston, et al. (1999) take note of the high level of solidification in the worldwide oil industry all through the 1990s, while Mitchell and Mulherin (1996) locate that unpredictable oil costs emphatically influenced the takeover action in the 1980s, especially in oil-related businesses (e.g. oil generation) and ward businesses (e.g. transportation). Granier and Podesta (2010) watch mergers between firms having a place with different vitality markets, for example, gas and power. Servaes (1994) discovers confirm from a subsample of O&G takeover focuses on that they tend to overinvest their capital consumptions in the years paving the way to takeovers. This confirmation varies from his entire example of 700 US target organizations in which there is no proof of overinvestment. In this way, they found no support for the thought that takeovers emerged from the need of the acquirer to lessen overinvestment in capital consumptions in the years paving the way to takeover. Other prior reviews in this field look at administration duty in takeovers (Regan, 1984), contextual analyses on oil takeovers (Cooper and Richards, 1988; Ruback, 1983), valuation of takeovers (Ferguson and Popkin, 1982), and the capital planning outcomes emerging from O&G takeovers (Reid, 1973).

Global oil request development has been reexamined up 30 tb/d since the past report, to a great extent to reflect superior to expected oil utilization in OECD Europe and Other Asia. World oil request development presently remains at 1.53 mb/d to normal 92.88 mb/d. For 2016, anticipated oil request development has been kept unaltered at 1.25 mb/d, averaging 94.13 mb/d.

Preparatory information demonstrates that worldwide oil supply expanded by 0.37 mb/d to normal 95.58 mb/d in November contrasted and the earlier month. Non-OPEC oil supply is relied upon to develop by 1.0 mb/d to normal 57.51 mb/d in 2015, modified up by 0.28 mb/d over the earlier month's estimation. The principle purposes behind this development were the upward amendments in the US, the UK, Brazil, Russia and China, for the most part in 3Q15 and in addition modification in 4Q15 figure . It is normal that development from OECD Americas, OECD Europe, Other Asia, Latin America, FSU and China will be in part counterbalance by decreases in OECD Asia Pacific, the Middle East and Africa. Development in 2015 is normal at possibly higher yield levels in 4Q15 from the US, Canada and Russia. Non-OPEC oil supply in 2016 has been modified around 0.25 mb/d to a normal of 57.14 mb/d, a compression of 0.38 mb/d from 2015 levels. Contributing components incorporate expected more extreme generation decreases in US shale plays, legacy wells dwarfing recently penetrated wells and in addition the negative impacts of capex cuts in various areas of the world.

Reserves of Kazakhstan

The oil industry of the Republic of Kazakhstan plays an important role in the structure of the national economy. The share of the oil and gas industry of the country's GDP in 2015 was 25%.

Oil and gas bearing areas, in which 172 oil and 42 condensate fields are located, occupy about 62% of the territory of Kazakhstan. From the total number of reserves deposits, more than 80 fields are under development stage. The main oil and gas reserves in Kazakhstan (more than 90%) are concentrated in the 16 largest reserves deposits - Tengiz, Kashagan, Karachaganak, Uzen, Zhetibai, Zhanajol, Kalamkas, Kenkiyak, Karazhanbas, Kumkol, Northern Buzachi, Alibekmola, Prorva Central and Eastern, Kenbai, Korolevskoe. Half of these reserves are concentrated on two giant oil fields - Kashagan and Tengiz.

The reserves deposits are located on the territory of six from the fourteen regions of Kazakhstan - in Aktyube, Atyrau, Western Kazakhstan, Karaganda, Kyzylorda and Mangistau regions. Approximately 70% of the hydrocarbon reserves are concentrated in the western regions. Kazakhstan takes second plece on reserves of oil among the CIS countries, behind Russia, and on reserves of natural gas - the third place after Russia and Turkmenistan.

According to the Ministry of Energy of the Republic of Kazakhstan, the total estimated recoverable hydrocarbon resources in the country are 17 billion tons, of which 8 billion tons (47% of all reserves) of which located on the Kazakhstan sector of the Caspian Sea. According to proven oil reserves, Kazakhstan is among the 15 leading countries of the world, with 3.3% of the world's hydrocarbon reserves (recoverable oil reserves, whose share in the world reserves is 2.9%, is 5.5 billion tonnes).

A feature of the explored gas deposits in the Republic of Kazakhstan is that virtually all the major fields produce gas in parallel with oil and condensate production. The reserves of natural gas, according to the Ministry of Oil and Gas of the Republic of Kazakhstan, are 3.9 trillion cubic meters or 1.9% of the world's reserves of this energy resource.